China has unveiled new initiatives aimed at boosting the development of index-based investment products, representing a significant step to support the struggling stock market in an unstable global economic environment.

This was reported by Bloomberg.

The government seeks to achieve a substantial increase in the scale and share of index investments in the capital market through sustained efforts over a designated period, as stated by the China Securities Regulatory Commission (CSRC) on its website on Sunday.

The regulator aims to enhance the asset allocation function of index funds and provide more convenient channels for accessing medium- and long-term funds.

CSRC will also work to attract foreign funds to invest in yuan-denominated A-shares through exchange-traded funds while actively promoting the growth of equity and bond exchange-traded funds. The market regulatory body has also pledged to reduce the costs of index funds and exempt them from maker fees.

In recent months, Chinese stocks have come under pressure due to concerns about a prolonged economic slump and threats of tariff increases from U.S. President Donald Trump. Traders are increasingly disappointed with Beijing's efforts to stimulate the economy and are questioning the effectiveness of measures taken so far.